IMPIEMENTATION McDONAID'S STYLE
Form paradigm-busting arrangements with suppliers.
Know a country's culture before you hit the beach.
• Hire locals whenever possible.
• Maximize autonomy.
• Tweak the standard menu only slightly from place to place.
• Keep pricing low to build market share. Profits w follow when economies of scale kick in.27
Decisions regarding global alliances and entry strategies must now be put into motion with the next stage of planning - strategic implementation. Implemen tation plans are detailed and pervade the entire organization because they entail setting up overall policies, administrative responsibilities, and schedules throughout the organization to enact the selected strategy and to ensure it works. In the case of a merger or IJV, this process requires compromising and blending procedures among two or more companies and is extremely complex. The importance of the implementation phase of the strategic management process cannot be overemphasized. Until they are put into operation, strategic plans remain abstract ideas - verbal or printed proposals that have no effect on the organization.
Successful implementation requires the orchestration of many variables into a cohesive system that complements the desired strategy - that is, a system of fits that will facilitate the actual working of the strategic plan. In this way, the stoicture, systems, and processes of the firm are coordinated and set into motion by a system of management by objectives (MBa), with the primary objective being the fulfillment of strategy. Managers must review the organizational structure and, if necessary; change it to facilitate the administration of the strategy and to coordinate activities in a particular location with headquarters (as discussed further in Chapter 8.. In addition to ensuring the strategy and structure fit, managers must allocate resources to make the strategy work: budgeting money, facilities, equipment, people, and other support. Increasingly, that support necessitates a unified technology infrastructure in order to coordinate diverse businesses around the world and to satisfy the need for current and reliable information- An efficient technology infrastructure can provide a strategic advantage in a globally competitive environment. Jack Welch, while CEO of General Electric (he retired in late 2001. used to refer to his e-commerce initiative, saying:
It will change relationships with suppliers. Within 18 months, all our
suppliers will supply us on the Internet, or they won't do business
with us.
An overarching factor affecting all the other variables necessary for successful implementation is that of leadership; it is people, after all, who make things happen. The firm's leaders must skillfully guide employees and processes in the desired direction. Managers with different combinations of experience, education, abilities, and personality tend to be more suited to implementing certain strategies- 28 In an equity-sharing alliance, sorting out which top managers in each company will be in which position is a sensitive matter. Who in which company will be CEO is usually worked out as part of the initial deal in alliance agreements. This problem seems to be frequently settled these days by setting up joint CEOs, one from each company. Setting monitoring systems into place to control activities and ensure success completes, but does not end, the strategic management process. Rather, it is a continuous process, using feedback to reevaluate strategy for needed modifications and for updating and recycling plans. Of particular note here we should consider what is involved in effective management of international joint ventures, since they are such a common form of global alliance, yet are fraught with implementation
STRATEGIC IMPLEMENTATION : Strategy Implementation article from Formulating Implement Catagory STRATEGIC IMPLEMENTATION
STRATEGIC IMPLEMENTATION Strategy Implementation article from Strategy Implementation Formulating Implement.Free learning from data about STRATEGIC IMPLEMENTATION Strategy Implementation Formulating Implement Business Management,online business management,business management classes,online business management degrees